Apple plunges most in nearly six years on IPhone slump

Apple CEO Tim Cook delivers the keynote address at the Apple 2012 World Wide Developers Conference at Moscone West

Nobody in China wants Apple's eye-wateringly priced iPhones, sighs CEO Tim Cook

Apple Inc shares tumbled as much as 10 percent on Thursday after the iPhone maker blamed weak China demand for its revenue shortfall in the holiday quarter, a clear sign of the company's struggles in the world's largest smartphone market.

That's rocked the stock markets, and stoked fears of a slowing Chinese economy.

US shares fell after Apple CEO Tim Cook told shareholders after markets closed Wednesday that Chinese iPhone sales were slipping.

Apple Inc. plunged to its lowest price in a year-and-a-half after the company cut its revenue outlook for the first time in nearly two decades, citing weaker demand in China.

Originally, Apple had forecast anywhere between $89 billion and $93 billion, while analysts opted for $91.5 billion. Specifically, Cook said that poor iPhone sales in China was the main reason behind Apple's revised guidance.

The lawsuit's bottom line: "As a result of Defendants' wrongful acts and omissions, and precipitous decline in the market value of Apple's securities, Plaintiff and other Class members have suffered significant losses and damages".

Investors also were encouraged by news that the US and China will hold trade talks in Beijing on January 7 and 8.

Apple isn't the only company that could be hurt by China's slowing economy.

Apple began making older, cheaper iPhones in India in 2017 at a plant near the southern tech hub of Bangalore, starting with the iPhone SE and adding the iPhone 6S in the middle of a year ago.

Kay said the trillion-dollar valuation was "irrational" and based on growth projections Apple is unlikely to achieve without a new catalyst.

Apple CEO Tim Cook said in a letter to investors earlier in the day that the contraction in China's smartphone market has been "particularly sharp". "We believe the economic environment in China has been further impacted by rising trade tensions with the United States", he wrote. Universal Display Corp. declined 3.5 per cent and Lumentum Holdings Inc. tumbled 8.7 per cent. Shares of USA retailers that sell Apple products were also weak on the news.

Apple is one of the most powerful tech companies on the planet. "Don't forget, Apple makes the product in China". While this achievement was widely celebrated, it wasn't long before the bad news started piling in, leading to a substantial decline in Apple stock. On Thursday it was also announced that Apple is likely to remove some iPhones from stores in Germany, as Qualcomm moves to enforce an earlier court order banning the sale of some iPhone models in the country.

The German case, part of a global patent spat between the two companies, is Qualcomm's third major effort to secure a ban on iPhones over patent-infringement allegations after similar moves in the United States and China.

"That is having an impact on earnings and it's not going to be just Apple", he said. It also led to big drops overall in the USA stock market, as well as other financial markets around the world.

Making high-end iPhones locally may shave a few hundred dollars off pricesin India, where the cheapest XS costs $1,430 and the average annual wage is about $2,000, but making real headway will require Apple to offer a much cheaper product. These analysts said in a research note that services represent a huge business opportunity for Apple.

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